A

PROJECT
ON
“ A COMPARATIVE STUDY OF CAR LOAN BY TATA CAPITAL LTD. & OTHER
BANKS”

For the partial fulfillment of the requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION

(SESSION: - 2010 - 2011)

Under the Guidance of : Submitted by :

Mr. Mohit Singhal Vidhi Arya

(Assistant Professor) Roll no. 1033670042

Affiliated to Mahamaya Technical University, Noida

MTU Code 336

 ACKNOLEDGEMENT

If words are considered to be signs of gratitude then let these words convey the very

same. My sincere gratitude to TATA CAPITAL LTD. for providing me with an

opportunity to work with TATA CAPITAL LTD. and giving necessary directions on doing

this project to the best of my abilities.

I am highly indebted to Mr. Krishan Verma, (Branch Manager), who has provided me

with the necessary information and also for the support extended out to me in the

completion of this report and his valuable suggestion and comments on bringing out this

report in the best way possible.

I am also thanks to Dr. R. K. Jatley, Director (REMTECH Shamli), who has sincerely

supported me with the valuable insights into the completion of this project. I extend my

heartfelt thanks to Mr. Abhishek Bagla, HOD, & Mr. Mohit Singhal to help me during

this project.

I am grateful to all faculty members of Roorkee Engineering and Management

Technology Institute, Shamli and my friends who have helped me in the successful

completion of this project.

(VIDHI ARYA)
 DECLARATION

I am VIDHI ARYA, the student of M.B.A.of REM Tech. (affiliated to M.T.U.,

Noida). Here by declare that the project report on the COMPARATIVE STUDY OF

CAR LOAN BY TATA CAPITAL LTD & OTHER BANKS.

It is my original work and has not been submitted by any other person.

I also declare that I have done my work sincerely and accurately even then if any

mistake or error had kept in I request to readers to point out these errors and me to

remove these errors for future.

(VIDHI ARYA)
 PREFACE

On the job training in business organization infuses among student senses

of critical analysis of the real managerial situations to they are exposed. This gives them

an opportunity to apply their conceptual, theoretical and imaginative skills to real life

situations and evaluate the results thereof.

The concept of summer training, which is there in curriculum of Business Management

Schools, serves two important purposes. Firstly, it gives the student the fair amount of

insight of the problem faced by them. Secondly, this type of projects helps business

management students to get a first hand experience of the actual working conditions,

which otherwise is possible only when students the job Joining.

As a part of MBA Program, student has to pursue a project duly approved by the

Faculty of Concerned area. I had the privilege of undertaking the project on “A

COMPARATIVE STUDY ON CAR LOAN BY TATA CAPITAL LTD. & OTHER

BANKS”

This report is account of what I learnt and experienced during my training and I

have tried to complete this report with as much perfection as possible.

 EXECUTIVE SUMMARY

In today‟s corporate and competitive world, I find that banking sector has the maximum

growth and potential as compared to the other sectors. This growth potential attracts me

to enter in this sector and Tata Capital Ltd. has given me the opportunity to work and

get experience in highly competitive and enhancing sector.

 The success story of good market share of different market organizations

depends upon the availability of the product and services near to the customer,

which can be distributed through a distribution channel.

 Marketing channels helps company in getting good market share and reach to
customer more fluently and for that all big giant in this sector of banking take help

of good marketing channels. Auto loan is a big demand in today‟s era and

banking corporations also available in this sector.

 Marketing channels are the only way for a company of banking sector through
which policies and benefits of the company can be explained to the customer.
 INDEX

S.NO. CONTENT

1 Company profile

2 Objectives

3 Research methodology

4 Car loan

5 SWOT analysis

6 Data interpretation & analysis

7 Findings

8 Conclusion

9 Recommendations

10 Appendices

11 Limitations of the study

9 Bibliography
 INTRODUCTION

Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is registered

with the Reserve Bank of India as a Systemically Important Non Deposit Accepting Non

Banking Financial Company (NBFC) and offers fund and fee-based financial services to

its customers.

We only do what’s right for you’

The Tatas are amongst the most respected business houses in the world. Tata Capital

aims to bring the trust and expertise of the Tatas to an economically and socially

relevant sector like financial services.

The essence of brand Tata Capital is encapsulated in our brand proposition – „We only

do what‟s right for you'. The proposition reflects our strong resolve to deliver financial

solutions that are „right‟ for our customers and the society at large.

Tata Capital seeks to build strong relationships with its customers and deliver superior

and consistent customer experience across all products and touch-points.

 ORIGINATION OF COMPANY

The beginning of the Tata Group can be traced back to 1868, when Jamsetji

Nusserwanji Tata established a trading company dealing in cotton in Bombay (now

Mumbai), British India.

This was followed by the installation of 'Empress Mills' in Nagpur in 1877. Taj

Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903.

Sir Dorab Tata, the eldest son of Jamsetji Tata became the chairman of the

group after his father's death in 1904. Under him, the group ventured into steel

production (1905) and hydroelectric power generation (1910).

After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till

1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata.

Tata Group is an Indian multinational conglomerate company headquartered in

the Bombay House in Mumbai, India. Tata Group is one of the largest companies in

India by market capitalization and revenue. It has interests in communications and

information technology, engineering, materials, services, energy, consumer products

and chemicals.
 The Tata Group has operations in more than 80 countries across six continents

and its companies export products and services to 80 nations. The Tata Group

comprises 114 companies and subsidiaries in eight business sectors, 27 of which are

publicly listed.

65.8% of the ownership of Tata Group is held in charitable trusts. Companies

which form a major part of the group include Tata Steel (including Tata Steel Europe),

Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata

Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata

Power, Tata Communications, Tata Sons, Tata Teleservices and the Taj Hotels.

The group takes the name of its founder, Jamsedji Tata, a member of whose

family has almost invariably been the chairman of the group. The current chairman of

the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is one of the

major international business figures in the age of globality. The company is currently in
its fifth generation of family stewardship. TATA Group's 114 companies are held by its

main company Tata Sons and the main owner of Tata Sons are various charitable

organisations developed and run by Tata Group. Out of which JRD Tata Trust & Sir

Ratan Tata Trust are the main holders. About 65% ownership of Tata Sons which is the

key holding company of the other 114 Tata Group Company is held by various

charitable organisations.

The 2009, annual survey by the Reputation Institute ranked Tata Group as the

11th most reputable company in the world. The survey included 600 global companies.

The Tata Group has helped establish and finance numerous quality research,

educational and cultural institutes in India.The group was awarded the Carnegie Medal

of Philanthropy in 2007 in recognition of its long history of philanthropic activities. Tata

gets more than 2/3 of its revenue from outside India.

In June 2011, based on market value Tata Group has become India's

wealthiest group with $98.7 billion.

 TATA CAPITAL LTD.

Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is

registered with the Reserve Bank of India as a Systemically Important Non Deposit

Accepting Non Banking Financial Company (NBFC) and offers fund and fee-based

financial services to its customers.

A trusted and customer-centric, one-stop financial services provider, Tata Capital

Limited caters to the diverse needs of retail, corporate and institutional customers,

directly or indirectly, through its subsidiaries across various areas of business namely

the Commercial Finance, Investment Banking, Private Equity, Infrastructure Finance,

Securities, Wealth Management, Consumer Loans, Cards and Travel Related Services.

Tata Capital is headquartered in Mumbai and has a wide network of over 100

branches spanning all critical markets in India.

Financial Highlights:

Tata Capital is a fast expanding financial services provider and built a strong foundation

in its initial years of business.

YTD Dec 2010 (Rs. Crore):

 Total Assets 14, 463

 Total Advances 12,100

 Net Worth 2,222

 Capital Adequacy Ratio 17.1%

THE TATA’S TODAY MARKET VALUE:

 Market capitalization of 28 listed companies( Feb., 17, 2011)

454,688 cr/ $100.26 bn

 6.9% of BOMBAY STOCK EXCHANGES‟S MAKET CAP

 3.5 mn shareholders
 VISION & MISSION

Mission:

“To be a competitive value provider in international business for Group companies and

all our partners.”

Vision:

 Our philosophy is rooted in the Tata Group‟s core values: Integrity,

Understanding, Unity, Excellence and Responsibility. It is our vision to exemplify

these core values in the financial sector and become the leading financial

services company in India with a global footprint.

 We aspire to become a pioneering and forward-looking organization that is

collaborative, nimble, innovative and responsive to the changing financial needs

of our clients. We strive to be a reliable and a result-oriented custodian of our

clients‟ finances. We seek to create an amicable atmosphere of collaboration,

understanding and unity, to ensure happy, motivated and engaged employees.

 We seek to be trusted, admired and respected amongst all out stake holders,
customers, employees, regulators, share holders and the community at large.

We wish to achieve our vision by only doing what‟s right.

We only do what’s right for you:

 The essence of brand Tata Capital is encapsulated in our brand proposition –

„We only do what’s right for you'

 The proposition reflects our strong resolve to deliver financial solutions that are
„right‟ for our customers and the society at large.

 We seek to build strong relationships with customers via deep understanding of

their needs, strong financial expertise and the delivery of superior and consistent

customer experience across all touch-points.

Brand Charter:

 We choose to put our customer‟s interest above ours, and fulfill their needs.
 We choose to use our expertise to get the best results for our customers.
 We choose to innovate and come up with new ways to fulfill our customers‟
needs.

 We choose to make promises we can keep, and keep the ones that we have
made.

 We choose to believe that we enrich our customers, and not just make them rich.
 We choose to be humble and courteous with everyone who walks through our
doors.
  We choose to respect our customers and colleagues, and in turn gain their
respect.

 We choose to earn our stakeholders‟ trust and not just expect it.
 We choose to let not just our expertise, but also our conscience lead us.

Corporate Sustainability:

 We at Tata Capital believe that corporate sustainability is a cornerstone for

business operations.

 Tata Capital is a socially responsible corporate citizen and a socially committed

organization. We have always made sincere efforts to protect the interests of all

our stakeholders and contribute to society.

 With a view to make a meaningful and positive contribution, we have identified

four key areas of work - Livelihood & Employability, Health, Education &

Environment.
A Unique Customer Centric Business Model:

 Tata Capital aims to build itself into a customer centric organization and thus
supports a front end which is truly based on customer convenience.

 All products and services of Tata Capital are offered to the Retail, Corporate and
Institutional customers via a unique common sales and service structure - a „one

stop shop‟ for the customer, servicing his entire financial requirements through a

„single window‟.

Commercial Finance:

 With its wide array of products and customized service, our commercial finance
business, helps small, medium and large corporates grow their business.

 Our team of handpicked professionals offers indepth expertise to help customers

keep pace with the changing marketplace and offer them appropriate solutions to

meet their ever-growing financial needs.

 Our range of offerings includes Term Loans, Working Capital Loans, Channel
Finance, Equipment Finance, Lease Rental Discounting, Bill Discounting Letter

of Credit and Bank Guarantee.

 SERVICES PROVIDED BY TATA CAPITAL LTD.

Commercial Finance

With its wide array of products and customized service, our commercial finance

business, helps small, medium and large corporates grow their business. Our team of

handpicked professionals offers in-depth expertise to help customers keep pace with

the changing marketplace and offer them appropriate solutions to meet their ever-

growing financial needs. Our range of offerings includes Term Loans, Working Capital

Loans, Channel Finance, Equipment Finance, Lease Rental Discounting, Bill

Discounting Letter of Credit* and Bank Guarantee*

Investment Banking

Tata Capital Investment Banking services help Institutions and Corporates manage and

grow their business via high quality financial advisory services and capital market

solutions. Our team of dedicated and experienced professionals understands the needs

of its customers and offers them cost-effective solutions from a bouquet of services

comprising M&A Advisory, PE Syndication and Debt and Equity Capital Market

services.
 Private Equity

Tata Capital‟s Private Equity business identifies, funds, nurtures and profitably exits

companies, with significant growth potential. Our team looks to create value in these

companies, beyond its role as a financial investor, by supporting them in areas like

strategy, business development, manufacturing, marketing, technology, treasury and

facilitating overall improvement and growth of the company‟s operations. To enable this,

the team leverages the vast business management experience of the Tatas across

different sectors of the economy.

Infrastructure Finance

Our Infrastructure Finance business caters to the specialized needs of the

infrastructure sector. With an array of attractive finance options to suit the varying needs

of its customers, both large and small and backed by a reputation of reliability and trust,

it brings a promise of quality and world class service. Our range of offerings includes

Equipment Finance, Project Finance, Equipment Rentals, Working Capital Loans, Bill

Discounting/ Factoring, Refinance, Top Up Loans and Loan Syndication

 Securities

Tata Securities Limited*, a wholly owned subsidiary of Tata Capital Limited, offers, both

institutional and retail customers, quality products and services like equity trading and

research. With a strong research and execution team, and uncompromising ethical

standards, Tata Securities strives to work in the interest of its customers and has

successfully built a franchise of strong relations.

Wealth Management

Whether it is selecting the right investment opportunity, growing a financial portfolio or

building a retirement nest, our Wealth Management team guides our customers at every

step. Backed with strong research capabilities and a deep understanding of our

customers, our team helps recommend and execute a customized financial strategy that

is just right for our customers. The spectrum of offerings includes, Financial Planning

Services, Retirement Planning Services, Third party investment products like Portfolio

Management Services, Private Equity/Venture Capital Funds, Structured Products,

Mutual Funds, Fixed Deposits and Bonds.

 Consumer Loans

Our wide range of consumer loans helps ensure that the dreams our customers want to

realize today, are not put off for tomorrow. With a deep understanding of our customers‟

needs we are able to guide them at every step and offer them specific financial

solutions. Our Consumer Loans include, Home Loans*, Auto Loans, Personal Loans,

Business Loans, Education Loans, Loans against Property, Loans against Shares#,

Loans against Gold.

Tata Cards

The Tata Card* combines the convenience of a powerful credit card with a rewarding

membership to the Empower program. The credit card allows customers to earn points

and the Empower program, India's first multi-brand loyalty program, offers them the

advantage of redeeming these points across several loyalty programs.

 Travel Related Services

Our travel related services helps cater to a range of travel needs - from planning

customized holiday packages for individual customers to group travel arrangements for

corporate customers. Our focus on service quality and transparency is supplemented by

our commitment to optimize the cost, comfort and convenience for all our customers.

Our wide range of services includes Airline ticketing, Visa & passport facilitation, Hotel

accommodation and Cars-hire & surface transport.

Forex Services

TT Holdings & Services Limited, a wholly-owned subsidiary of Tata Capital Limited

offers a complete range of travel related foreign exchange products.

Our wide range of services include travelers cheques, foreign currency notes, foreign

currency denominated pre-paid travel cards, inward money transfer service and other

associated travel related products like travel insurance, prepaid calling cards
 Affiliates:

Financials Limited is a BPO and KPO unit specializing in the area of financial services

and owned by Tata Capital Limited, Tata Sons Limited and others.

Tata Capital Limited also owns around 4% of the equity capital of (Development Credit

Bank), a new generation private sector bank with a network of 80 state-of-the-art

branches across 10 states and two union territories.

Strategic Alliances:

With Mizuho Securities Co. Ltd. to foster business

cooperation in private equity, investment banking including cross border mergers and

acquisitions, securities business including broking and distribution, structured finance

and other business areas such as wealth management.

With Mizuho Corporate Bank Limited (MHCB) to foster business cooperation,

enhancing cross-market value creation capabilities, strengthening competitive

advantages in addition to aiding each other in gaining a deeper understanding of the

Indian and Japanese markets. As part of the understanding, Tata Capital and MHCB

will cooperate in a wide-range of business areas. Some of these include Ninja Loans,

Project and Infrastructure Finance and Treasury Products.

 With Mitsubishi UFJ Securities Co., Limited to establish a basis of cooperation

in a wide range of strategic business areas that include cross-border investment

banking, global offering of Indian.

 Leaders with a vision

Tata Capital Board consists of valuable and extensively experienced individual experts

in their domains. They direct and nurture the Company with their priceless guidance,

foresight and vision.

Farrokh K. Kavarana

Farrokh K. Kavarana is a Director of Tata Sons Limited and Tata Industries Limited, the

apex holding companies of the Tata Group. He is the Chairman of several Tata

Companies in India and abroad – notably Tata AIG Life and General Insurance

Companies, Tata Asset Management Ltd., Trent Ltd. and Tata Projects Ltd.

Farokh Nariman Subedar

Mr. F N Subedar is a qualified chartered accountant and company secretary and has

vast experience in the matters of company administration, taxation, accounts and

finance. He is the senior Vice President - Finance and Company Secretary of Tata Sons

Ltd. and is on the board of various Tata companies. Mr. Subedar has served as the

Chairman of the Direct Taxation Committee of the Bombay Chambers of Commerce

and Industry.
Hoshang Noshirwan Sinor

Hoshang Noshirwan Sinor was the Chief Executive, Indian Banks‟ Association, Mumbai,

India till July 31, 2008. With 42 years of extensive experience in the banking sector, he

has had exposure to the working of both public sector and private sector banks in India

and has hence, had the experience of both the phases of nationalization and

liberalization in this sector in India..

Ishaat Hussain

Ishaat Hussain, the Finance Director of Tata Sons Ltd. since July 2000, joined the

Board of Tata Sons as an Executive Director on 1st July 1999. Prior to joining Tata

Sons, he served as the Senior Vice-President and Executive Director – Finance in Tata

Steel where he served for almost 10 years. Besides being on the Board of Tata Sons

Ltd., he is also the Chairman of Voltas Limited and Tata Sky Limited. He serves on the

Boards of several Tata Companies like Tata Steel, Tata Industries, Tata Teleservices

and Titan Industries Limited. Mr. Hussain is a member on the Primary Markets Advisory

Committee of the Securities and Exchange Board of India (SEBI). In April 2005, he was

appointed a Member of the Board of Trade and in November 2006 he was appointed a

Public Interest Director of Bombay Stock Exchange Limited.

Janki Ballabh

Janki Ballabh joined the State Bank of India in July 1966 and served in several

important positions which included assignments at the New York Branch of the Bank,

Chief Executive Officer of the Bank's Branch at Singapore, Chief General Manager

(Product Development, Marketing and Personal Banking) at the Corporate Office and

Deputy Managing Director and Group Executive (International Banking), before taking

over as Chairman, State Bank Group in November 1, 2000. Besides heading the State

Bank of India, Shri Ballabh was also the chairman of the Seven Associate Banks of the

State Bank of India, 4 banking subsidiaries of the Bank abroad and seven non-banking

subsidiaries of the Bank in India. On retirement from State Bank of India, Shri Ballabh

was appointed by the President of India as Vigilance Commissioner in the Central

Vigilance Commission, New Delhi for 3 years from November 2002 to October 2005.

Shri Ballabh worked as Chairman, Reserve Bank of India Services Board from 8th

December 2005 to 23rd October 2007. He is presently the Chairman, UTI Trustee Co.

of UTI Mutual Fund. He also serves as the Director on the Boards of Tata AIG Life

Insurance Co. and Small Industries Development Bank of India (SIDBI). He is also a

Member of the Asia Pacific Advisory Committee of Barclays Bank PLC, London since

June 1, 2007.
Praveen P Kadle

Praveen P Kadle, the Managing Director of Tata Capital Limited, has been associated

with the Tata Group for the last 16 years in various important capacities. For the first 5

years, he served as the Chief Financial Officer of Tata‟s joint venture with IBM in India.

Thereafter, he joined Tata Motors Limited as Vice-President (Finance) and in the year

2001 he joined the Board of Tata Motors Limited as Executive Director – Finance and

Corporate Affairs.
 AWARDS & RECOGNITION

 Padma Bhushan on 26 January 2000

 Padma Vibhushan . On 26 January 2008

 NASSCOM Global Leadership on February 14 2008 in Mumbai

 Carnegie Medal of Philanthropy in 2007

 Robert S. Hatfield Fellow in Economic Education In March 2006

 London School of Economics and Indian Institute of Technology

Kharagpur.

 the Government of Singapore conferred honorary citizenship on Ratan Tata,

 the title of honorary economic advisor to Hangzhou city in the Zhejiang province
of China.

 Fortune magazine in November 2007 ,listed him among the 25 most powerfull

business man

 Time magazine's 2008, listed him the World's 100 most influential people
OBJECTIVE OF THE STUDY:

 TO STUDY THE CAR LOAN PROVIDED BY TATA CAPITAL LTD. TO THEIR

CUSTOMERS.

 TO STUDY THE DETAILED PROCEDURE INVOLVED IN THE SANCTIONING

OF CAR LOAN.

 TO STUDY THE AWARENESS OF THE CAR LOAN AMONG THE CUSTOMER

 MAKE A COMPARATIVE STUDY OF TATA CAPITAL LTD. CAR LOAN WITH

OTHER COMPETITIVE BANKS

 TO STUDY THE RULES AND DOCUMENTS REQUIRED BY TATA CAPITAL

LDT FOR CAR LOAN

 TO KNOW THE VARIOUS LOAN PROVIDED BY THE TATA CAPITAL LTD.

 RECOMMEND THE VALUABLE SUGGESTION WHICH MAY INCREASE THE

FAITH OF NEW CUSTOMERS.
 RESEARCH METHODOLOGY

Research

The study of research method provides you with the knowledge and skills you need to

solve the problem and meet the challenges of the fast- based decision. Marketing

environment we define Business Research as a systematic inquiry whose objective is to

provide information to solve managerial problem.

It seeks to find explanation to unexplored phenomena to clarify the doubtful facts and to

correct the misconceived facts. This will be done by carrying out the following process.

a) Defining the problem and research objective:

The research objective is to find out the perception of the customers about the services

provided.

b) Method of data collection:

After determining the research objective the nature of data to be collected is given due

consideration as it will influence the interpretation of the entire project, after determining

the nature of data the next step would be to adopt an appropriate data collection

method. The method of data collection adopted by the research is inclusive of a

structured well designed questionnaire.

c) Sampling Design:

 Sampling units:

The respondents of the questionnaire are categorized are the customers of the Tata

Capital Ltd.

 Sample size:

Survey will be conducted for 100 respondents who are the customers of Tata Capital

Ltd.

 Sampling technique:

The respondents were interviewed with the help of a well structured questionnaire and

will be interviewed personally to gather the required information.

 Sources of data:

Data collected for the project study is inclusive of both primary as well as secondary

data.

Type of Data Used

There are basically two types of Data

 Primary Data
 Secondary Data

Primary Data
Primary Data is first hand information that the researcher collects. It helps in collecting

useful and most accurate information that is needed for the researcher to do his

research.

Primary Data will be collected from Tata Capital Ltd. clients who are already using the

services of Tata Capital Ltd., for the descriptive information. The purpose of this study

is to find out perception of clients in the population (what percentage) of KARNAL city

about car loan by Tata Capital Ltd.

Sources of Primary Data

1. Questionnaire

2. Interview Schedule

Secondary Data

Secondary data is what the researcher collects from different sources. It also help

researcher to get elaborate information to do his research.

Sources of Secondary Data

1. Internet

2. Journal

Research Design
 MARKETING RESEARCH

Marketing research covers the field of problems, techniques, and other aspects of

marketing and related decision-making and their implementation. It studies an

economic unit in respect of its various constituents such as consumers, buyers, and

sellers. It studies their response pattern towards prize, promotion, purchasing power,

and loyalty towards specific brands and similar other marketing activities. It also tries

to determine the contribution of other relevant factors such as habits, consumers,

and preference to decision making.

TYPES OF RESEARCH DESIGN

 The research design adopted for this study is exploratory research design.

 Exploratory research includes survey and fact finding enquiries of different kinds.

 Research design is used to describe the state of affairs, as it exists at present.

Types of Research

 Descriptive Research
Descriptive study is a fact- finding investigation with adequate interpretation. It is the

simplest type of research. It is more specific than an explanatory study, as it has focus

on particular aspect of the problem studied. It is designed together descriptive

information and provide information for formulating more sophisticated studies. Data

are collected by using one or more appropriate method, observation, interviewing and

mail questionnaire.

Target Group/ Population

As this research is based on Relationship Marketing my Target group is my Clients who

are using the Services of Tata Capital Ltd.

Area of Study

Karnal

Tools for Data Collection

The Various method of Data gathering involves the use of appropriate recording forms.

These are called tools or instrument of data collection.

Total No. of Sample

100 (Hundred)

RESEARCH INSTRUMENT:
  A structured design questionnaire is used for surveying the consumers.

 Both open ended and close ended questions are included.

Questionnaire

 Close Ended Question

Are structured ones with two or more alternative responses from which respondent can

chose. They contain standardized answers and they are simple to administer and easy

to compile and analyzes.

 Dichotomous or two- choice questions

A dichotomous question can be answered in one of the two responses such as “Yes”

or “No”. It is necessary to realized that in many two choices question there may be

potential alternative beyond the stated two.

 Multiple Choice questions

These questions contain more than two alternatives.

Following points should be remembered before making this question

 The list of alternative choice should be exhaustive.

 It Should not overlapping

 There should be fair balance in choice

 All alternative should be reasonable.

Sampling

The Basic idea of sampling is that by selecting some of the element in a population in

order to get first hand information of study.

There are two type of sampling probability Sampling & Non probability sampling and in

this research, Researcher has taken probability sampling.

 Probability Sampling

Probability sampling is most commonly associated with survey based research where

you need to make inferences from your sample about a population to answer your

research questions or to meet your objectives. The process of probability sampling can

be divided into four stages:

 Identify a suitable frame based on your research question or objectives

 Decide on a suitable sample size

 select the most appropriate sampling technique and select the sample

 Check that the sample is representative of the population

The objective of probability sampling depends on the research question & on the

objective. Subsequently I need to have face to face contact with respondents.

 Simple random sampling

Simple random sampling involve in selecting sample at random from the sampling

frame using either random no. table. In my research I had use random selection of

respondent who used to come for the loan taking purpose in Tata Capital Ltd. it is most

accurate and easily accessible form of sampling method .

 Convenience Sampling

Convenience or haphazard sampling involve selection haphazardly those cases that are

easiest to obtain for your sample, Such as the person interviewed at random in a

shopping center for the interview programmed. The sample selection process is

continued until your required sample size has been reached. Although this techniques

of sampling is widely used it is prone to bias and influence that are beyond your control.

I has selected convenience sampling as some of the respondent are my clients only.

Technique used for analysis & interpretation

 Bar Diagram & Pie Chart

 Percentage Analysis
Some Car Companies:
 Maruti Suzuki- Alto, Wagon-R, Swift, Zen, Van, Gypsy,Sx4, Eco

 Hyundai- Accent, I-20, I-10

 Honda- Civic, Honda City
 Mahindra- Logan, Scorpio
 Tata- Safari, Indigo, Sumo
 GM – Spark, Cruise, Beat, Magnum
 MEANING OF LOAN:

Loan means a credit facility where the money is disbursed in the beginning, mostly in

one stroke, and later on only recoveries in the forms of installments take place in the

account. Very often the two words „Loans‟ and „Advance‟ are interchangeably used

without observing any difference in their meanings. But there exists a fine degree of

distinction between the two words. Loan means a credit facility where the money is

disbursed in the beginning, mostly in one stroke, and later on only recoveries in the

forms of installments take place in the account. In case of „Advance‟, credit facility is

availed of as and when needed and continuous debit and credit operations are made in

the account, within the prescribed limit. Thus, credit facilities repayable in installments

are „loans‟ and credit facilities like cash credit and overdrafts where cheque book facility

is also given „advances‟. In case of loan, except initial disbursal, no further debits are

allowed barring interest being debited by the bank. The account will have credit entries

only by the way of recovery and balance outstanding will gradually decline. But in case

of Advance, cheque book remains with the borrower and any number of debits and

credits are permitted with in the agreed limit. In banking parlance, mostly the deposits

are payable on demand including term deposits, which too can be discounted at any

time and as such „Advances‟ are preferred as compared to „Loans‟ for simple reasons

that advance can be recalled on demand whilst loan will be repaid only in installments

over a long period. Although the logic of such preference is practically not visible since
the cash credit accounts are never repaid and only limits are enhanced every year while

the loans are at least paid back gradually. However, traditionally banks prefer facilities

which are payable on demand. Moreover, for granting loans, others specialized

agencies like State Financial Corporations have been promoted and they don‟t sanction

advances.

TYPES OF LOANS

Banks grant loans for different periods- short, medium and long, and for different

purposes. Broadly, the loans granted by banks are classified as Error! Bookmark not

defined.

1. Short term loan

Short term loans are granted to meet the working capital needs of the borrowers. These

loans are granted for granted less than a year. These loans are granted against the

security of tangible assets- mainly the movable assets like goods and commodities,

share, debentures etc. since April, 1995 reserve Bank of India has made in mandatory

for the banks to grant a portion of bank credit to big customers in the form of loans,

which may be the various maturities. The reserve bank of India has also permitted the
banks to roll over such loans, i.e., to extent loan for another period at the expiry of the

tenor of the first loan.

2. Medium term loan & long term loan

Medium and long term loans are usually called „Term Loan‟. Medium terms loans are

granted for more than a year and less than three years and long term loans are granted

for more than three years and are meant for purchase of capital assets for the

establishment of new units and for expansion or diversification of an existing unit. Bank

usually grants such loans together with specialized financial institutions like Industrial

Finance Corporation of India, Industrial Credit and Investment Corporation of India etc.

3. Bridge loans

Bridge loans are essentially short term loans which are granted to industrial

undertakings to meet their urgent and essential needs during the period when

formalities for availing of the term loan sanctioned by financial institutions are being

fulfilled or necessary steps are being taken to raise funds from the capital market.

These loans are granted by banks or by financial institutions themselves and are
automatically repaid out of amount of the term loan or the funds raised in the capital

market.

4. Composite loan

When a loan is granted both for buying capital assets and for working capital purposes it

is called a composite loan. Such loans are usually granted to small borrowers, such as

artisans, farmers, small industries etc.

5. Consumption loan

Though normally banks provide loans for productive purposes only, but as an exception

loans are also granted on a limited scale to meet the medical needs or the educational

expenses relating the marriages and other social ceremonies etc. of the needy persons.

Such loans are called consumption loans.

GROWTH RATE IN CAR LOAN

A person wants certain luxuries for enjoying his life and a car is one of them, a car gives

him convenience to travel one place to another. Now a days it become a status symbol

in society. So it becomes a need of every human being but some people does not have

the capacity to pay a huge amount at a time but they can pay the price in installment so

for these people many banks/financial institution offer car loans schemes. In which they

can buy car and pay its price in installment. Almost everyone make easier to purchase a

car.

 Now days car is become one of the basic need of man but buying a own car
become a dream for man because of its prices.

 So in fulfillment of this dream man, needs help. In this condition Tata Capital Ltd
take a Initiative to provide easy car loan to those people who are willing to buy a

own car.

 People are appreciating car loan scheme of Tata Capital Ltd and this can be
proof by figures which show that the total amount of car loan scheme is increase

in 2007-2010 amazingly.

THE TOTAL GROWTH IN AUTO LOAN SEGMENT FOR LAST THREE YEARS:-

YEAR 2008 2009 2010

Car Loan 37.88% 22.6% 38.8%

Growth%

GROWTH %

38.80% 37.88%

2008
2009
2010

22.60%

MAIN GROWTH DRIVERS:

 GROWING ECONOMY
 CHANGE IN DEMOGRAPHICS, PEOPLE PREFER USING LIFESTYLE
PRODUCTS
 INCREASING LITERACY LEVELS
 CHANGING REGULATORY ENVIRONMENT WITH REGULATION IN
EXCISE DUTIES

 EASY AVAILABILITY OF FINANCE & INDIAN CONSUMERS ARE NO

LONGFER AVERSE TO CONCEPT OF TAKING LOAN FOR BUYING

VEHICLES

 INCREASING CONSUMPTION MINDSET IN INDIA

 ORGANIZING USED CAR BUSINESS

CAR LOAN BY TATA CAPITAL LTD

 PRODUCT OVERVIEW

Auto loans are the installments loan for the purchase of new and used vehicle to be

used for personal business or commercial purpose. The auto loan programmer is a

retail asset product and can be availed by the individuals, sole proprietors, partnership

firms, NRI, private and public limited companies, who satisfies the credit worthiness of

the applicant, approve and disburse the loan and also mark a lien on the vehicle as a

security The lien on the vehicle has to be a first lien. Listed below are some of the key

product features:

Product------------- New and Used Car

Standard product ------------------ EMI in advance, EMI in arrears

Minimum loan -------------------- Rs10000

Tenure ----------------------------- 12-72 months

Eligible borrower --------------------- Salaried individuals, Self employed, Sole

Proprietorship, Partnership firms, NRI, Private and Public Companies.

Equated monthly installment (EMI) ------------- The amount paid by the customers each

month towards repayment of loan extended to him. EMI comprises of both principal and

interest components.

Loan to value LTV/ Extent of funding------------ The ratio of the maximum amount of loan

to the value / cost of the car varies with the vehicle make, model and tenure.

Loan type ------------------------- Term loan with hypothecation marked in favor of Tata C
apital Ltd.

Security / Collateral ----------------- Asset financed will be hypothecated / lien marked in

favors of Tata Capital Ltd.

System and Process ------------- Decentralize approval and disbursal with all loan being

booked fineness/ as per process set out time to time.

Credit approval process ------------------- Credit policy will lay down the borrower eligibility

criteria/approval process / deviation policy as approved by the central risk unit. Approval

authorities may be delegated to company employees/ company associates including

outsourcing agencies. Operations and collection policy will be circulated separately.

Collection ------------------- In-house and agency based collection through Tele calling

and field collection for soft buckets. Appointment of external agency for chronic and

serious defaulters and repossessions

Interest rates ----------------- As per approved rates from time to time

Type of car ----------------------------- As per list of cars approved by the company , please

refer to various product and LTV matrix/ chart.

Use of vehicle --------------------------- Vehicle firmament should be personal, official,

commercial use.

Approved location -------------------------- Generally Tata Capital Ltd prefers to give loan to

those customers who are residing near to the company. As it feel easy to contact the

customers and for communication also. However in some exceptional cases the
company can loans to those customers who are not residing near the company.

FEATURES AND BENEFITS of AUTO LOAN:

 Choose any car manufactured in India within a certain age.

 Borrow up to 80% of the value of the car.
 Flexible repayment option, ranging from 12 to 60 months.
 Borrow up to 3 times your annual salary (for salaried professionals) and 6

times your annual income (for self employed professionals).

 Available for almost all car models at attractive interest rates.

 Repay with easy EMIs.
 Attractive car loan plans – To Fastrack your loan, just choose the plan that is
right for you.

 Additional loan on existing loan – If you are an existing Tata Capital Ltd Auto
loan customer with a clear track record of 12 months or more, then you can

get an additional loan to the extent of your existing loan amount at attractive
 rate of interest.

 Customer Privileges
 Special benefits for Tata Capital Ltd employees.

LOANS PROVIDED BY TATA CAPITAL LTD.

 Home Loans
 Personal loan
 Home loan

 Two wheeler loan

 Commercial Vehicle loan
 Loan against securities
 Farm Equity Loans
 Construction Equipment loan
 Office Equipment loan
 Medical Equipment loan
PRODUCT OFFERINGS:

New Car loans:

 Funding of up to 100% of ex-showroom value

 Tenors from 12-84 months
 Competitive pricing

Used car Loans:

 Funding of up to 85% of valuation of car

 Tenors from 12-60 months
 Competitive pricing

Staff Vehicle Loan

Tata Capital Ltd. also provide car loan to their employees this loan is only meant for the
staff members of the company at attractive rate of interest with longer repayment

payment period. This loan is different from star auto fin loan.

NEW CAR LOAN:

FEATURES :

 Finance all passenger cars & most of the multi – utility cars.
 The tenure range is 12 – 72 months.
 Competitive rates.
 24 – 48 hours to process the loan after we receive complete set documents.
 Loan up to 90% of the invoice value.
 Prepay the loan anytime without any prepayment charge.
 Easy documentation.
 Processing charges waived for senior citizens, staff members & retired
employees of the bank & pensioner drawing pension from the bank.

DOCUMENTS REQUIRED:-

Documentation Salaried Self Partnerships Private Ltd Public Ltd

Requirements Individual employed Firms Company

Company
 Individual

Application Form Yes Yes Yes Yes Yes

Income Last 3 Years Last 3 Years Last 3 Years Last 3 Last 3 Years Audit

Documents (last ITR or Form ITR & ITR & Audited Years
B/S & P&L A/C
3 years) no.16 Audited Accounts Audited B/S

accounts & P&L A/C

Bank Statement Yes Yes Yes Yes Yes

(Last 12 months)

Proof of Identity Yes Yes Yes Yes Yes

Proof of Yes Yes Yes Yes Yes

Residence

Proof of Office Yes Yes Yes Yes Yes

Address

Legal A Letter Signed MOA or MOA & AOA

Documents by all the AOA

Partners

accepting the

Loan
ELIGIBILITY CRITERIA:-

For Salaried Individual, Self-employed Individuals, Partnership Firms, Public and Private

Limited Companies

Borrower Age Residence/Office Income Telephone CPV

Type Requirement

Salaried 21 at Residence should be Minimum Applicant CPV should

Individual beginning owned by the applicant should

Income of Be done at
or rented for >1 years. own
To 60 at Residence
Rs1.5lakh.
Landline
the end and office of
Phone at
of the applicant
residence
tenure. and co-
and at
applicant.
office.

Self 21 at Residence/office/Factory Minimum Applicant CPV should

Employed beginning should be done at

/ workshop should be Income of
Proprietor- to 65 at own residence
owned by the applicant
Rs0.60lac.
ship the end Landline and office of
or rented for at least
of the Phone at applicant
2years
tenure residence and co-

and at applicant.
 office.

Partner-ship NA Office/Factory/Workshop Minimum Landline CPV should

phone at be done at
Should be owned by the Income of
office. office and
firm or main partner or
Rs0.60lakh.
main
rented for at least
partner‟s
2years
residence.

Pvt. Ltd Co./ NA Office/Factory/Workshop Minimum Landline CPV should

Public Ltd Income of phone at be done at

Should be owned by the
Co. Rs0.60lac. office. office and
Co. or director or rented
main

For at least 2 years director‟s

residence.

FEES and CHARGES:-

Description of Charges New Car Loans

Cheque bouncing charges Rs 100

Stamp Duty At actual

Late Payment Penalty More than 2% per month

Processing Fees 1.10% or Rs1000

Other Charges -
USED CAR LOANS

Used car loans are installment loans for the purchase of used vehicle to be used for

personal, business or commercial purposes. The used car loan Programmes is a retail

asset product & can be availed by the Individuals, Sole Proprietor, Partnership Firms,

Pensioner, Farmers, Public & Private companies who satisfy the credit parameters set

out in this manual. The bank would assess the credit worthiness of the applicant,

approve and disburse the loan and also mark a lien on the vehicle as a security. The

lien on the vehicle has to be a first lien. Listed below are some the key product features:

Features:-

 Choose any car manufactured in India within a certain range.

 Borrow up to 70% of the value of the car.

 Flexible repayment options, ranging from 12 to 36 months.

 Borrow up to 2times your annual salary(for salaried professionals)

And 2times your annual income (for self employed professionals)

 Available for almost all car models at attractive interest rates.

 Repay with easy EMI‟s.

 If you have had a Preferred Account or a Corporate Salary Account

With Bank of India for than six months, you can get fast approvals on your

loans with minimal documentation.

 DOCUMENTS REQUIRED:-

Documentation Salaried Self Partnerships Firms Private Public Ltd Co

Requirements Individual employed Ltd

Individual Company

Application Form Yes Yes Yes Yes Yes

Income Documents Last 3 Last 3 Last 3 Years ITR & Last 3 Last 3 Years

(last 3 years) Years ITR Years ITR & Audited Accounts Years
Audited
or Form Audited Audited
B/S & P&L A/
no.16 accounts B/S & P&L

A/C

Bank Statement (Last Yes Yes Yes Yes Yes

 12 months)

Proof of Identity Yes Yes Yes Yes Yes

Proof of Residence Yes Yes Yes Yes Yes

Proof of Office Yes Yes Yes Yes Yes

Address

Legal Documents A Letter Signed by MOA & MOA & AOA

all the Partners AOA

accepting the Loan

ELIGIBILITY CRITERIA:-

For Salaried Individuals, Self-employed Individuals, Partnership Firms, Public and

Private Limited companies.

Criteria Salaried Self employed Partnership Company

firm

Age 21-60 years at 21-65 at the NA NA

the end of the end of the

tenure tenure

No. of years in Minimum 1 Minimum 1 NA NA

current year. year.

residence

Min. of years At least 3years At least 3years At least 3years At least 3

in/ of total in Business. in Existence. years in

Employment/ employment Existence.

Business

Min. income Gross income Last year & Last year & Last year &

for cars of Rs1.5lakh. latest year latest year latest year

must be must be must be

profitable. profitable. profitable.

Telephone Must be at Must be at One phone at At least 1

residence & at residence & at least in phone must be

office. office. Business & at business.

one at
 residence of

loan Executing

partner.

PRICING:-

 Highly competitive.

 1.10% processing fee payable up front (Pl contact local sales manager for

revised applicable rates).

 Customers can pre-pay the entire loan amount before the agreed tenure.

Fees and Charges:-

Description of Charges New Car Loans

Cheque bouncing charges Rs 100

Stamp Duty At actual

Late Payment Penalty More than 2% per month

 Processing Fees 1.10%

Other Charges -

Valuation charges Used Cars Rs2000 per case

Staff Vehicle Loan

Bank of India also provide car loan to their employees this loan is only meant for the

staff members of bank at attractive rate of interest with longer repayment payment

period. This loan is different from star auto fin loan.

Details of Staff Vehicle Loan:-

 Maximum amount = Rs360000

 Minimum Amount = Rs80000

 Margin = 10%
 Maximum repayment period = 15years

 Rate of Interest:-

 Up to Rs80000 at 8%pa.

 Above Rs80000 to Rs360000 at 12%pa.

 CPV Guidelines

Contact point verification (CPV) includes:

 Physical verification of residence and office

 Tele verification at residence and office

 Directory Check

Status of the CPV will be based on all the factors mentioned below:

 The address as given in the application form exits

 The applicant / Co – applicants stay / work at the given address

 The applicant is normally contact able at the given segment of the car

 The standard of living is appropriate with the segment of the car

 The third party confirmation are positive & there is no negative remark

 Directory check confirming the address and the name of the customer

including relatives.

 The vehicle should be for self/family/company use.

In cases where the CPV is marked as negative the below mentioned deviation grid

will be applicable

Condition Deviation Level

The address as given in the application No deviation

from does not exist

The correct address to be obtained at

CPV conducted at the right address.

The applicant/Co-applicant do not No deviation

stay/work at the given address

The correct address to be obtained at

CPV conducted at the right address.

The applicants normally not contactable No deviation

at the given contact address

The correct address to be obtained at

CPV conducted at the right address.

No of times CPV fired on new addresses L2

excluding the application address

L3

The standard of living is not appropriate L2

with the segment of the car

Any other deviations L3

For CIBIL Matches :

 The match should be a good match of an installment loan with at least a 12

month vintage and loan amount to be >=50% of the applied loan amount,

 Any one of address – residence/office in the application form should match one
of the last two addresses in the CIBIL report.

Repayment
 Definition

 The repayment should be from the Banks, NBFC or Financial institution,

who share customer database with CIBIL.

 Valid repayment proof – CIBIL, Statement of account, 12 months Bank EMI

debit

 Minimum 12 months clean repayment track or track of at least 50%

competed tenor whichever is less required

 Loan should not have been completed before 18 months prior to the date of
application

 There should not be more than 2 bounces in every completed 12 months

payment

 There should not be more than 1 bounces in the last 12 months of the loan
tenor

Repayment – Policy

Criteria Credit norms Deviation

Vehicle A1, A2, A3 and MUV segment vehicle as defined No Deviation

 segment in LTV matrix

Loan Please Note: Eligible loan amount will be the

Eligibility lower of EMI multiplier and loan amt. multiplier for

L1 – for
applied tenor <= 36 months and higher if applied
Funding >
tenor is > 36 month
Loan eligibility

Product EMI multiplier Loan amt. up to 5%

Multiplier
L2 – for

AL 50 times 1.5 times funding >

Loan eligibility
PL 50 times 1.5 times
up to 10%
CV 25 times 0.5 times

LTV Repayment Int. Ext.

(Vintage) Repayment Repayment

12-24 months Normal Normal

25-36 months +10% +5% No Deviation

>36months +15% +10%

Fees and Charges:-

 Description of Charges New Car Loans

Cheque bouncing charges Rs 100

Stamp Duty At actual

Late Payment Penalty More than 2% per month

Processing Fees 1.10%

Other Charges -

Valuation charges Used Cars Rs2000 per case

Comparison of car loan scheme offered by other bank with Tata Capital Ltd.

Almost every bank offers car loans. I had compared the entire car loan scheme offered
by HDFC Bank, ABN AMRO Bank, State Bank of India, Oriental Bank of Commerce and

Tata capital ltd. and the details of the findings are as follows.

STATE BANK OF INDIA:

 State Bank of India provide loan to individual as well as Business concern also.
 State bank of India provide loan which is repayable maximum up to 7years for
new car & In case of old car it is 3years.

 State Bank of India charge a prepayment charge of 2% in case loan is paid

before the tenure of the loan.

 State Bank of India Provide a loan amount of Rs15lakh.

ABN AMRO Bank

 ABN AMRO Bank provide car loan to individual as well as Business concern
also.
  The rate of interest charged by ABN AMRO Bank is as follows: In Case of New
Car-15%.

 ABN AMRO Bank Provide finance up to Rs20Lakh.

 ABN AMRO Bank charge 5% prepayment charge if the loan is paid before the
tenure of the loan.

HDFC Bank:

HDFC Bank offered car loan scheme with following features:-

 HDFC Bank Provide car loan individuals as well as business concerns also.
 The rate of interest charged by HDFC Banks is as follows:-
 In case New Car :- 11.30%
 HDFC Bank Provide finance up to 90% of the total loan amount.
 HDFC Bank Provide facility to repay the loan amount maximum in 7years.
 HDFC charge processing fees of Rs2150 – Rs3650.

ORIENTAL BANK OF COMMERCE

 Oriental Bank of commerce Provide car loan to individuals as well as business

concerns also.
 Oriental Bank of commerce provide loan up to 84months.
 Oriental Bank of Commerce finances up to Rs10lakh.

COMPARITIVE ANALYSIS AMONG DIFFERENT BANKS FOR CAR LOANS

 Bank’s Rate of Max. Loan Loan Processing Pre-

Interest Amount Tenure Fees payment

Charges

Tata Capital 9.25-11.50% 85% 5 Yrs Rs4500 4.5%

LTD.

ICICI Bank 13% 90% 1 – 5 yrs Rs. 2500 - 1.5%

5000

HDFC Bank 11.30% 90% 1-7yrs Rs. 2150 - N.A

3650

ABN AMRO 15% Rs. 20lakh N.A Rs. 1000 5%

Bank

PSBs

SBI 8 - 11.25% Rs. 15lakh 1-7yrs 0.50% 2%

Bank of India 8.75 -10% Rs. 25lakh 1-6yrs Rs.1000 NIL

DENA Bank 10.75 -11% Rs. 8lakh 1-5yrs Rs. 1000 NIL

UCO Bank 11.50% 85% or 1-5yrs 1% or Rs.1000 0.5%

Rs.7.50Lakh

Indian Bank 11 - 11.25% Rs 15Lakh 1-5yrs 0.30% NIL

O.B.C 10.25- Rs10Lakh 1-7yrs 0.50% NIL

10.75%
Comparison of different bank‟s car loan schemes it gives result that provides best car

loan scheme because it provide loan up to Rs25 lakhs for individual & for corporate it

can finance up to Rs100lakh at very low interest rate. Like up to 3 years it charge only

8.75% & beyond 3years it charge interest of 9.25% per annum. Like when a people

wants to financed his car worth Rs7Lakh & want to repay this amount in 3years then

SBI (8%) & TATA CAPITAL LTD (8.75%) charge lowest interest rates. But when a

person wants to repay his loan in more than 3years then is best because it charge only

9.25% interest rate on the other hand if a person wants to finance a car worth of more

than Rs7lakhs then again only offers him lowest rate of interest which is 9.50% pa Up

to 3years & after 3years it charge only 10.00% interest rate per annum. Moreover it

provide maximum amount of loan 25lakhs among all public sector banks. So only offers

the best car loan scheme which suits

 CUSTOMERTOUCH POINTS

CUSTOMER CAN APPROACH TATA CAPITAL THROUGH:

 CALL AT THE CENTRAL INBOUND CALL CENTRE 18002096060

 WALK IN‟S AT THE TATA CAPITAL BRANCH

 ACTIVITIES AT THE CORPORATE PREMISES/ EMAILERS
 EMAIL AT [email protected]
 SWOT ANALYSIS

STRENGTH:

 Right strategy for the right products.

 Superior customer service vs. competitors.
 Great Brand Image
 Products have required accreditations.
 High degree of customer satisfaction.
 Good place to work
 Lower response time with efficient and effective service.
 Dedicated workforce aiming at making a long-term career in the field.

WEAKNESS:

 Some gaps in range for certain sectors.

 Customer service staff need training.
 Processes and systems, etc
 Management cover insufficient.
  Sectoral growth is constrained by low unemployment levels and

competition for staff/

OPPORTUNITY:

 Profit margins will be good.

 Could extend to overseas broadly.

 New specialist applications.

 Could seek better customer deals.

 Fast-track career development opportunities on an industry-wide basis.

 An applied research centre to create opportunities for developing techniques to

provide added-value services.

THREATS:

 Legislation could impact.

 Great risk involved

 Very high competition prevailing in the industry.

 Vulnerable to reactive

attack by major competitors

  Lack of infrastructure in rural areas could constrain investment.
High volume/low cost market is intensely competitive.
ANALYSIS

OPPORTUNITIES

As car loan is a profitable lending option due to continued good performance of the

services sector, the bank will continue to focus on this segment. The bank will continue

to study the market requirements, evolve innovative and diversified products to reach

the customers in every nook and corner of the country.

For better decision support system,business intelligence, management information

system and decision making. The bank is in final stage of rolling out data warehouse.

RISK AND CONCERNS

Libralisation opens up various opportunities and at the same time it also increase

exposure to risks. Risk management, therefore, is paramount. Since risks have a direct

and proportional relation with returns, the bank has to clearly envisage its risks which

can be managed effectively. Further risks management system need to be brought to

such a level of sophistication that the systems on their own generate adequate capital

and liquidity cushions against economic and market distruptions.

Q1. Do you have a car?

a) Yes 80%
 b) No 20%

Sales

20%

Yes
No

Interception:

80% respondent have a car

20 % do not have.

Inference:

Most of the people have car.

Q2. Are you aware of Products & services provided by Tata capital Ltd?.

a) Yes 70%

b) NO 30%

No. of People

30%

Yes

70% No

Interception:

70% people are aware about the product & services by Tata Capital Ltd
30% are unknown to it.

Inference:

Most of the people are known to product & services by Tata Capital Ltd.

Q3. If yes are you aware of the advance products (Loan segments) of Tata

Capital Ltd.?

a) YES 68%

b) NO 32%
 % OF PEOPLE

32%

YES
NO

68%

Interception:

68% people are aware of the advance product of Tata Capital Ltd.

32% are unaware to it.

Inference:

Most of the people are aware of advance products of Tata Capital Ltd.
Q4. Which bank/financial institution you prefer for taking loans?

a) Tata Capital Ltd 51%

b) SBI 35%

c) ICICI Bank 3%

d) HDFC Bank 2%

e) Other Banks 9%

% OF PEOPLE
Tata Capital Ltd.

ICICI

HDFC
% OF PEOPLE
SBI

OTHER BANKS

0% 10% 20% 30% 40% 50% 60%

Interception:

According to my sample size 51% of people prefer Tata Capital Ltd. for loan product,

but some people prefer SBI, ICICI, HDFC & Other banks for loan because they are

working with the bank & it is easier for them to pay the interest because it is less as

compared to other bank because they are the employees of that bank.

Inference:
Most of the people prefer Tata Capital Ltd. For loan.

Q5. If you prefer Tata Capital Ltd. for taking loan than what influence you to

take loan from Tata Capital Ltd.?

a) Transparency

b) Lowest EMI

c) Lowest interest rate

d) Simple & fast processing

% OF PEOPLE
70%
60%
50%
40%
30% % OF PEOPLE
20%
10%
0%
Lowest interest transparency lowest EMI Simple & Fast
rate processing

Interception:

60% of people prefer Tata Capital Ltd because of lowest interest rate

20% for transparency

12% for lowest EMI

8% for simle & fat services

Inference:

Most of the people said that they prefer Tata Capital Ltd. for taking loan because of

the lowest interest rate & transparency for any kind of loan product and it is easy to

get loan from Tata Capital Ltd. as compared to other banks/financial institution

because less paper work is required & simple & fast processing is required.

Q6. Which loan product of Tata Capital Ltd. you have used?

a) Home Loan (16)

b) Education Loan (14)

c) Car Loan (32)

d) Personal Loan (7)

e) Other Loans (6)

TOTAL NO. OF PEOPLE 75

 % OF PEOPLE

8%
9% HOME LOAN
EDUCATION LOAN
43%
CAR LOAN
21%
PERSONAL LOAN
OTHER LOANS
19%

Interception:

 From the sample size 75% of people are using the Tata Capital Ltd.

loan product.

 From the 75 people 43% of people took car loan from Tata Capital Ltd..

 19% of people took education loan for their children,

 21% of people took home loan from Tata Capita Ltd.

 9% of people took personal loan.

Inference:

Most of the people prefer Tata Capital Ltd for Car loan.

Q7. What do you feel about the services providing by Tata Capital Ltd. in
advance product?

a) Bad 0%

b) Satisfactory 25%

c) Good 55%

d) Excellent 20%

TOTAL NO. OF PEOPLE 100

% OF PEOPLE

60% 55%

50%

40%

30% 25% % OF PEOPLE

20%
20%

10%
0%
0%
GOOD SATISFACTORY EXCELLENT BAD

Interpretation:

From this it is clear that the service provide by Tata Capital Ltd. in its advance

product is good in between the customer.

All of them satisfy with the product provide by Tata Capital Ltd. 55% of people said

that the service provide by Tata Capital Ltd. is good & 20% said it is excellent &
 25% of people said that it is satisfactory.

Q8.Which features you like most in loan segment of Tata Capital Ltd.?

a) Less paper work

b) Attractive interest rate

c) Transparency

d) Simple & fast processing

e) Longer repayment period

% OF PEOPLE

Longer repayment period

Simple & fast processing

Less paper work

% OF PEOPLE

Transparency

Attractive rate of interest

0% 10% 20% 30% 40% 50%

Interpretation:

40% people like Tata Capital Ltd. Due to attractive interest rate,

35% due to transparency

15% due to longer repayment period

5 % for fast & simple service

5 % for less paper work

Inference:

Most of the people like the attractive interest rate & transparency.

It‟s easier of people to repay the whole loan amount with low interest rates & longer

repayment period.
FINDINGS:

 Tata Capital Ltd. is applying aggressive marketing strategy for car loan.
 Tata Capital Ltd. is having Tie –up with various Automobile companies eg.
(Tata Motors, Maruti, Hyundai Motors)

 Tata Capital Ltd. is trying to Tie-up with some other Automobile Companies.
 Tata Capital Ltd. is offering various facilities to customers for taking loan.
  Tata Capital Ltd. is trying to find better relationship with local dealers to
increase to the customer database.

 Tata Capital Ltd. is using proper market channel to aware customer about car
loan.

 Tata Capital Ltd. is advertising their car loan by using print media also.

\
There are various type of car loans are being provided by Tata Capital Ltd. ranging

from short – term to long- term to packing and like. But as studies throughout the

project, lending process is not so simple. It involve a long series of steps and planning

as suited to and decided by the company itself, of course, abiding by the rules and

regulations of Tata Capital Ltd. and RBI.

 It Provide easy car loan access if all required documents are prepared.
 It charge minimum processing fees moreover processing charges are waived
for senior citizens, staff members & retired employees of the company.

 It fulfills the dreams of the people having a car.

 Somewhere it Contribute in Indian economy by releasing the liquidity in terms
of loans.

 Better and timely quality of services and product diversification.

 Highest loan amount in comparison of other banks/financial institutions.
 It provide car loan at lowest rate of interest in comparison to other
banks/financial institution.

Negative Points:

 The company take long processing time, during the time customer may dilute

his plan of taking loan.

 Communication gap to approach right kind of people

 No long term customer relationship.

 List of defaulters

 Tata Capital Ltd. is not providing services like refinance & overdraft
RECOMMENDATIONS:

 Try to maintain very good relationship with car dealers.

 Tata Capital Ltd. is having a large number of existing customers so they should
convert their strength in opportunity.

 Try to aware customer about car loan availability & procedure that how to
apply for loan.

 More promotional schemes should be followed, for example if a customer is

paying his EMI regularly, he can be given some gift or some concession in

interest rate that would be an incentive for others also to pay regularly.

 By making randomly surveys it should identify prospective buyers.

 By declaring special loan scheme on festive seasons i.e. loan mela.
 Facility to access loan from anywhere i.e. nearest to your resident, office,
working place.

 Properly and timely solution of customer complaints.

 Tata Capital Ltd. should also provide extra facilities like Refinance & Overdraft
facilities which help in making new & retain existing customers & win the trust

of the people.
APPENDICSES:-

Q. Who can avail car loan?

A. Individuals and Business Concerns.

Q. Whether finance is also available for used cars?

A. Finance is also available for purchase of Used Cars not older than 3 years.

Q. How much loan can be availed under the scheme?

A. For individuals, loan amount shall be 24 times the net monthly Salary/Income,

subject to maximum of 70% of the cost of the vehicle whichever is less. In case of

business concerns, loan amount can be up to Rs100lakh or Rs1crore.

Q. Whether the income of the spouse is also taken into account for determining the

amount of loan?

A. Yes, income of the spouse can also be taken into account for determining the

amount of loan. In such cases, the spouse shall stand as a guarantor.

Q. What will be the repayment period?

A. Amount of loan together with interest shall be repayable in 72 equal monthly

installments. However, for old car, loan together with interest is to Repaid maximum

in 36 equal monthly Installment.

Q. How much loan can be availed for Indian Make & Foreign Make Vehicle?

A. Tata Capital Ltd Provide car loan for Indian Vehicle as well as for Foreign Make

Vehicle. The company Provide maximum amount of Rs25lakh for Indian make vehicle

& Rs75lakh for Foreign Make Vehicle.

Q. Whether interest applicable is flat rate or at reducing balance?

A. Interest is charged on reducing balance.

Q. What formalities are to be completed for availing the facility?

A. The following documents are required to be submitted:

1. Performa Invoice of Car to be purchased

2. Proof of residence

3. Proof of Income

4. Detail of Guarantor
 LIMITATIONS OF THE STUDY

The study report consists of few limitations:

 The report has been conducted within a limited time frame.

 Only selected Branches and Banks have been considered for the study.
 Samples were selected conveniently.
 For the convenient of study non probability samples have been used.
 Amateur use of MS-Excel software for Data Analysis.
 The sample size does not represent the total population.
 Most of the time people give appointment but they are not available at that

time.

 Awareness level of the company is low.

 Market was too volatile during the period of research .
By the help of Manuals:

Tata Capital report 2010 and internet

By the help of Other Sources

By the Heads & the consultant of Tata Capital Ltd.

By Personal Surveys

By the helps of Websites

www.tatacapital.com

www.google.com
 Questionnaire

Name- ____________________________________

Occupation- ______________________________

Contact Detail- ___________________________

Q1. Do you have a car?

 a) YES

b) NO

Q2. Have you taken car on loan or self financed?

a) ON LOAN

b) SELF FINANCED

Q2. Are you aware of products & services provided by Tata Capital Ltd.

a) YES

b) NO

Q3. If yes are you aware of the advance products (Loan segments) of Tata Capital Ltd.

a) YES

b) NO

Q4. Which bank/financial institution you prefer for taking loans:

a) Tata Capital Ltd

b) SBI

c) HDFC

d) ICICI bank

e) Other Bank, Specify (___________)

Q5. If you prefer Tata Capital Ltd for taking loan than what influence you to take loan

from Tata Capital Ltd.

a) Transparency

b) Lowest interest rate

c) Lowest EMI

d) Fast & simple service

Q6. Which loan product of Tata Capital Ltd you have used?.

a) Home Loan

b) Education Loan

c) Car Loan

d) Personal Loan

e) Other Loans, Specify (____________)

Q7. How long you have been availing the loan?

a) < 1 year
 b) 1 < 5 years

c) 5 < 10 years

d) > 10 years

Q7. What do you feel about the services providing by Tata Capital Ltd in advance

product.

a) Bad

b) Satisfactory

c) Good

d) Excellent

Q8. Which feature you like most in loan segments of Tata Capital Ltd.

a) Less paper work

b) Attractive interest rate

c) Transparency

d) Simple & fast processing

Q9. Any suggestion you want to give for the betterment of TATA CAPITAL LTD

advance product.
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